BT backs FY outlook as Q1 revenues tick higher

BT Group backed its full-year outlook on Thursday as it posted an uptick in first-quarter revenue after it lifted prices, but a decline in pre-tax profit.

In the three months to 30 June, revenue nudged up 1% to £5.1bn. This was due to improved pricing and solid trading in the Consumer and Openreach divisions.

Meanwhile, adjusted earnings before interest, tax, depreciation and amortisation rose 2% to £1.9bn, mainly due to flow through from revenue and "continued strong cost control". Pre-tax profit 10% lower versus the same period a year earlier at £482m.

The company backed its 2023 outlook for revenue growth, at least £7.9bn EBITDA, around £4.8bn capital expenditure and between £1.3bn-£1.5bn normalised free cash flow.

Chief executive Philip Jansen said: "BT Group has made a good start to the year; we’re accelerating our network investments and performing well operationally. Despite ongoing challenges in our enterprise businesses, we returned to revenue and EBITDA growth in the quarter.

"We continued to grow the number of BT and EE customers connected to our next generation networks. We're building our full fibre broadband network faster than ever and we're seeing record customer connections - both ahead of our own expectations.

"The modernisation of BT Group remains on track. We are delivering and notwithstanding the current economic uncertainty we remain confident in our outlook for this financial year."